‘Time To Introspect,' ASCI CEO On Increasing Ad Violations In Real Money Gaming

The Advertising Standards Council of India (ASCI) announced their annual complaints report for FY 22-23 last week, particularly regarding advertising violations in the digital realm. The most consequential finding of the report revealed that real-money gaming has now become the leading category for problematic advertisements. 

Surpassing the education sector, which had consistently ranked as the top violating category at ASCI in previous years, gaming moved from the fifth position to the top spot in the report. The Core spoke to Manisha Kapoor, CEO and Secretary General, ASCI, to understand the reasons behind the significant jump, its impact, and more.

'Violative online advertisements can pose financial and health risks'

Elaborating on the possible reasons for the jump in violations, Kapoor said that the real-money gaming industry has experienced significant growth in recent years, fuelled by advancements in technology, increased smartphone penetration, and easy access to online platforms. According to her, the COVID-19 pandemic also contributed to more people indulging in these gaming platforms. 

Of the 7,581 ads that required modification, 15.1% belonged to the gaming sector. The report further stated that 92% of ads in the real money gaming category missed adding the required disclaimer that informs consumers of the financial and addiction risks. 

Top Violative Categories (Source: ASCI)

It is noteworthy that not only is real money gaming the most violative category, but it is also the most non-compliant sector for Yr 22-23. Calling the non-compliance "unfortunate", Kapoor said that in addition to the challenges in protecting consumers in the real-money gaming sector, there has also been a rampant promotion of offshore betting companies that are illegal in many parts of India.

While the overall compliance in Print and TV remained high at 94%, the scope of misleading ads in the digital space is miles ahead. 75% of the advertisements that were in violation of the ASCI code were on the digital medium. Enumerating the challenges to curb the increase of misleading ads and threats to user safety in the digital space, Kapoor said, "Given the high volume of ads on digital media, coupled with short campaign durations and emerging new formats of digital ads, it is challenging to regulate them. Violative online advertisements in categories like real-money gaming, virtual digital assets, and health and nutrition among others, can pose serious financial and health risks to consumers. Additionally, we have observed manipulative, dark patterns in online advertising."

According to Kapoor, dark patterns are tactics employed in online advertising like drip pricing, nagging, trick questions, bait and switch, and disguised ads across platforms that work to undermine the consumer online experience. "These affect a brand's image and growth in the long run as consumers eventually abandon these brands and become suspicious of the online space in general."

Massive rise in the number of complaints featuring celebrities

The report showed a notable surge in the prevalence of misleading advertisements featuring celebrities. ASCI handled a staggering 503 cases of such ads, marking an 803% increase compared to the previous year's 55 cases. In 97% of these instances, the celebrities endorsing the products failed to provide evidence of due diligence as mandated by the Consumer Protection Act. 

MS Dhoni, Bhuvam Bam, Jim Sarbh and Virat Kohli were among the non-compliant celebrities in the gaming category.

The extensive use of celebrities in advertisements creates a greater reach and impact amongst consumers. As a self-regulatory organisation, Kapoor explained ASCI engages with the respective brand, endorser or influencers, urging them to rectify false claim/s or withdraw the advertisement. ASCI's recommendations are shared with the complainant, the advertiser and the celebrity which is later made available on our website. Non-Compliant advertisements are reported to the government. 

"By law, celebrities need to make sure they have done due diligence for the ads they endorse, or else they can be fined or suspended from endorsement. A consumer can complain to ASCI on seeing an ad they believe is misleading or harmful, it is not necessary that they should have transacted or suffered a loss," she added.

'Time To Introspect'

ASCI accepts complaints from everybody and the time to take a decision on a complaint varies depending on the nature of the case. Of the 7,928 ads scrutinised by ASCI, 88% were taken up suo-motu. Does this mean the consumers are trying it difficult to identify what is violative when it comes to advertisements?

According to Kapoor, with digital advertising and content, the lines are often blurred when it comes to differentiating between what is an advertisement and what isn't. "Ads are far more personalized and even the kinds of advertising formats, like disappearing ads, reels and social media stories make the medium quite complex. Given the rapidly evolving digital landscape, advertising too has evolved and consumers might find it tough to catch up. Employing tools like AI-based tracking of ads makes it easier to weed out the ones who violate advertising guidelines."

To educate consumers about their rights and the need to be vigilant on digital media, Kapoor explained that the ASCI undertake regular campaigns on social media. On the organisation's recent plans for the future, she said, "Moving forward, we will be launching the ASCI Academy, which will establish the preventative footprint of ASCI's work. The academy will work with all relevant stakeholders, including brands, advertisers and consumers, to increase awareness about self-regulation in advertising. We have also improved our complaints mechanism, making it easier for consumers to report ads that they find objectionable through our AI-based complaints management system, TARA."

The report's findings, particularly the sharp increase in violations in the real gaming industry are concerning and require immediate attention. "It is time for the real-money gaming industry to come together, introspect and ensure that they follow the rules and ensure self-regulation and increased compliance. This will maintain consumer and regulatory trust in the sector," said Kapoor.

She added that in order to truly address consumer safety in the digital space, it would require all the stakeholders including the government, industry bodies, consumer organisations along with digital platforms to come together and take the necessary steps. Digital platforms like search engines, and social media networks also need to set strict standards and review processes for advertisements before they are published. It will have to be a sustained and cooperative effort to meet the end goal of effectively protecting consumers in the digital space.